Delaware (State or other jurisdiction of incorporation or organization) | 20-2164234 (I.R.S. Employer Identification No.) | |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o (do not check if a smaller reporting company) | Smaller reporting company o | Emerging growth company o |
• | our expectations regarding future trends, expectations and performance of our business; |
• | our belief that we have sufficient liquidity to fund our business operations during the next twelve months; |
• | our expectations about the impact of our strategic plans; and |
• | our expectations regarding our level of capital expenditures in 2017. |
PART I — Financial Information | ||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 243,273 | $ | 245,888 | $ | 824,401 | $ | 848,856 | |||||||
Cost of sales | 119,810 | 123,454 | 397,547 | 427,416 | |||||||||||
Gross profit | 123,463 | 122,434 | 426,854 | 421,440 | |||||||||||
Selling, general and administrative expenses | 120,778 | 123,649 | 379,141 | 387,807 | |||||||||||
Income (loss) from operations | 2,685 | (1,215 | ) | 47,713 | 33,633 | ||||||||||
Foreign currency gain (loss), net | (257 | ) | 1,379 | 181 | (1,568 | ) | |||||||||
Interest income | 269 | 178 | 576 | 558 | |||||||||||
Interest expense | (167 | ) | (184 | ) | (539 | ) | (661 | ) | |||||||
Other income (expense) | 54 | (1 | ) | 187 | (108 | ) | |||||||||
Income before income taxes | 2,584 | 157 | 48,118 | 31,854 | |||||||||||
Income tax expense | 955 | 1,690 | 13,519 | 7,704 | |||||||||||
Net income (loss) | 1,629 | (1,533 | ) | 34,599 | 24,150 | ||||||||||
Dividends on Series A convertible preferred stock | (3,000 | ) | (3,000 | ) | (9,000 | ) | (9,000 | ) | |||||||
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (892 | ) | (819 | ) | (2,621 | ) | (2,406 | ) | |||||||
Net income (loss) attributable to common stockholders | $ | (2,263 | ) | $ | (5,352 | ) | $ | 22,978 | $ | 12,744 | |||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.26 | $ | 0.15 | |||||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.26 | $ | 0.14 | |||||
Weighted average common shares outstanding - basic | 71,895 | 73,493 | 73,212 | 73,323 | |||||||||||
Weighted average common shares outstanding - diluted | 71,895 | 73,493 | 74,160 | 74,730 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 1,629 | $ | (1,533 | ) | $ | 34,599 | $ | 24,150 | ||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency gain (loss), net | 4,124 | (140 | ) | 11,589 | 6,531 | ||||||||||
Total comprehensive income (loss) | $ | 5,753 | $ | (1,673 | ) | $ | 46,188 | $ | 30,681 | ||||||
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 178,189 | $ | 147,565 | |||
Accounts receivable, net of allowances of $49,360 and $48,138, respectively | 92,708 | 78,297 | |||||
Inventories | 140,282 | 147,029 | |||||
Income tax receivable | 7,421 | 2,995 | |||||
Other receivables | 14,547 | 14,642 | |||||
Restricted cash - current | 2,175 | 2,534 | |||||
Prepaid expenses and other assets | 24,416 | 32,413 | |||||
Total current assets | 459,738 | 425,475 | |||||
Property and equipment, net of accumulated depreciation and amortization of $95,512 and $88,603, respectively | 38,412 | 44,090 | |||||
Intangible assets, net | 66,505 | 72,700 | |||||
Goodwill | 1,663 | 1,480 | |||||
Deferred tax assets, net | 7,098 | 6,825 | |||||
Restricted cash | 2,895 | 2,547 | |||||
Other assets | 13,342 | 13,273 | |||||
Total assets | $ | 589,653 | $ | 566,390 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 55,181 | $ | 61,927 | |||
Accrued expenses and other liabilities | 84,836 | 78,282 | |||||
Income taxes payable | 14,096 | 6,593 | |||||
Current portion of borrowings and capital lease obligations | 1,070 | 2,338 | |||||
Total current liabilities | 155,183 | 149,140 | |||||
Long-term income tax payable | 4,926 | 4,464 | |||||
Long-term capital lease obligations | 35 | 40 | |||||
Other liabilities | 13,931 | 13,462 | |||||
Total liabilities | 174,075 | 167,106 | |||||
Commitments and contingencies | |||||||
Series A convertible preferred stock, 1.0 million authorized, 0.2 million shares outstanding, liquidation preference $203 million | 181,522 | 178,901 | |||||
Stockholders’ equity: | |||||||
Preferred stock, par value $0.001 per share, 4.0 million shares authorized, none outstanding | — | — | |||||
Common stock, par value $0.001 per share, 94.7 million and 93.9 million issued, 71.0 million and 73.6 million shares outstanding, respectively | 95 | 94 | |||||
Treasury stock, at cost, 23.7 million and 20.3 million shares, respectively | (311,302 | ) | (284,237 | ) | |||
Additional paid-in capital | 370,567 | 364,397 | |||||
Retained earnings | 218,703 | 195,725 | |||||
Accumulated other comprehensive loss | (44,007 | ) | (55,596 | ) | |||
Total stockholders’ equity | 234,056 | 220,383 | |||||
Total liabilities and stockholders’ equity | $ | 589,653 | $ | 566,390 | |||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 34,599 | $ | 24,150 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 24,701 | 25,473 | |||||
Unrealized foreign currency gain (loss), net | 1,017 | (7,863 | ) | ||||
Share-based compensation | 6,851 | 8,006 | |||||
Other non-cash items | (1,208 | ) | 3,669 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net of allowances | (9,068 | ) | (15,762 | ) | |||
Inventories | 12,435 | 3,750 | |||||
Prepaid expenses and other assets | 12,997 | (7,559 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (1,909 | ) | (4,510 | ) | |||
Cash provided by operating activities | 80,415 | 29,354 | |||||
Cash flows from investing activities: | |||||||
Cash paid for purchases of property and equipment | (6,553 | ) | (12,651 | ) | |||
Proceeds from disposal of property and equipment | 1,562 | 2,425 | |||||
Cash paid for intangible assets | (7,710 | ) | (5,598 | ) | |||
Change in restricted cash | 383 | 953 | |||||
Cash used in investing activities | (12,318 | ) | (14,871 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from bank borrowings | 5,500 | 29,582 | |||||
Repayments of bank borrowings and capital lease obligations | (8,222 | ) | (32,378 | ) | |||
Dividends—Series A preferred stock | (9,000 | ) | (9,000 | ) | |||
Repurchases of common stock | (25,645 | ) | — | ||||
Other | (233 | ) | (338 | ) | |||
Cash used in financing activities | (37,600 | ) | (12,134 | ) | |||
Effect of exchange rate changes on cash | 127 | 4,526 | |||||
Net change in cash and cash equivalents | 30,624 | 6,875 | |||||
Cash and cash equivalents—beginning of period | 147,565 | 143,341 | |||||
Cash and cash equivalents—end of period | $ | 178,189 | $ | 150,216 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Advertising, production, promotional, and agency expenses | $ | 9,946 | $ | 11,066 | $ | 49,614 | $ | 48,664 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Property and equipment: | |||||||||||||||
Selling, general and administrative expenses | $ | 2,945 | $ | 3,179 | $ | 9,287 | $ | 9,987 | |||||||
Cost of sales | 554 | 420 | 1,677 | 1,226 | |||||||||||
Total depreciation and amortization expense | 3,499 | 3,599 | 10,964 | 11,213 | |||||||||||
Intangibles: | |||||||||||||||
Selling, general and administrative expenses | 3,304 | 3,637 | 10,251 | 10,385 | |||||||||||
Cost of sales | 1,083 | 1,206 | 3,486 | 3,875 | |||||||||||
Total amortization expense | 4,387 | 4,843 | 13,737 | 14,260 | |||||||||||
Total depreciation and amortization expense | $ | 7,886 | $ | 8,442 | $ | 24,701 | $ | 25,473 | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Finished goods | $ | 136,665 | $ | 142,333 | |||
Raw materials | 2,772 | 4,042 | |||||
Work-in-progress | 845 | 654 | |||||
Total inventories | $ | 140,282 | $ | 147,029 | |||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Useful Life | Gross | Accum. Amortiz. | Net | Gross | Accum. Amortiz. | Net | |||||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Capitalized software | 2 - 7 | $ | 145,247 | $ | (87,948 | ) | $ | 57,299 | $ | 142,358 | $ | (74,530 | ) | $ | 67,828 | ||||||||||
Patents, copyrights, and trademarks | 6 - 25 | 6,498 | (5,700 | ) | 798 | 6,438 | (5,471 | ) | 967 | ||||||||||||||||
Other | 2,243 | (2,243 | ) | — | 2,855 | (2,855 | ) | — | |||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
In progress (1) | 8,086 | — | 8,086 | 3,616 | — | 3,616 | |||||||||||||||||||
Trademarks and other | 322 | — | 322 | 289 | — | 289 | |||||||||||||||||||
Total | $ | 162,396 | $ | (95,891 | ) | $ | 66,505 | $ | 155,556 | $ | (82,856 | ) | $ | 72,700 | |||||||||||
September 30, 2017 | ||||
(in thousands) | ||||
2017 (remainder of year) | $ | 4,404 | ||
2018 | 16,284 | |||
2019 | 14,005 | |||
2020 | 11,309 | |||
2021 | 10,944 | |||
Thereafter | 1,151 | |||
Total | $ | 58,097 | ||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Accrued compensation and benefits | $ | 31,010 | $ | 20,898 | |||
Fulfillment, freight, and duties (1) | 11,784 | 14,572 | |||||
Professional services | 11,578 | 10,900 | |||||
Sales/use and value added taxes payable | 5,027 | 4,978 | |||||
Accrued rent and occupancy | 6,551 | 7,335 | |||||
Royalties payable and deferred revenue | 6,758 | 7,475 | |||||
Other (2) | 12,128 | 12,124 | |||||
Total accrued expenses and other liabilities | $ | 84,836 | $ | 78,282 | |||
Level | Inputs | ||||
1 | Unadjusted quoted prices in active markets for identical assets and liabilities. | ||||
2 | Unadjusted quoted prices in active markets for similar assets and liabilities; | ||||
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or | |||||
Inputs other than quoted prices that are observable for the asset or liability. | |||||
3 | Unobservable inputs for the asset or liability. | ||||
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Borrowings and capital lease obligations | $ | 1,105 | $ | 1,105 | $ | 2,378 | $ | 2,378 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Retail store asset impairment | $ | 150 | $ | 930 | $ | 150 | $ | 1,695 | |||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||
(in thousands) | |||||||||||||||
Foreign currency transaction gains (losses) | $ | 1,118 | $ | (833 | ) | $ | 6,541 | $ | (6,698 | ) | |||||
Netting of counterparty contracts | (833 | ) | 833 | (6,541 | ) | 6,541 | |||||||||
Foreign currency forward contract derivatives | $ | 285 | $ | — | $ | — | $ | (157 | ) | ||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Euro | $ | 41,271 | $ | (159 | ) | $ | 71,228 | $ | (1,441 | ) | |||||
Japanese Yen | 36,616 | (25 | ) | 87,171 | 4,180 | ||||||||||
Singapore Dollar | 31,689 | 245 | 94,763 | (2,611 | ) | ||||||||||
South Korean Won | 26,380 | 98 | 8,278 | 407 | |||||||||||
British Pound Sterling | 6,195 | 73 | 14,332 | (660 | ) | ||||||||||
Other currencies | 50,218 | 53 | 52,449 | (32 | ) | ||||||||||
Total | $ | 192,369 | $ | 285 | $ | 328,221 | $ | (157 | ) | ||||||
Latest maturity date | October 2017 | January 2017 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Foreign currency transaction gains (losses) | $ | (674 | ) | $ | 3,039 | $ | 1,120 | $ | 11,804 | ||||||
Foreign currency forward exchange contracts gains | |||||||||||||||
(losses) | 417 | (1,660 | ) | (939 | ) | (13,372 | ) | ||||||||
Foreign currency gain (loss), net | $ | (257 | ) | $ | 1,379 | $ | 181 | $ | (1,568 | ) | |||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Notes payable | $ | 1,058 | $ | 2,329 | |||
Capital lease obligations | 47 | 49 | |||||
Total borrowings and capital lease obligations | 1,105 | 2,378 | |||||
Less: Current portion of borrowings and capital lease obligations | 1,070 | 2,338 | |||||
Total long-term capital lease obligations | $ | 35 | $ | 40 | |||
September 30, 2017 | |||
(in thousands) | |||
2017 (remainder of year) | $ | 1,065 | |
2018 | 13 | ||
2019 | 13 | ||
2020 | 11 | ||
2021 | 3 | ||
Total principal debt maturities and capital lease obligations | 1,105 | ||
Less: current portion | 1,070 | ||
Non-current portion | $ | 35 | |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Cost of sales | $ | 93 | $ | 135 | $ | 293 | $ | 386 | |||||||
Selling, general and administrative expenses | 2,813 | 1,973 | 6,558 | 7,620 | |||||||||||
Total share-based compensation expense | $ | 2,906 | $ | 2,108 | $ | 6,851 | $ | 8,006 | |||||||
Number of Options | ||
Outstanding December 31, 2016 | 518,252 | |
Granted | 200,000 | |
Exercised | (1,500 | ) |
Forfeited or expired | (156,720 | ) |
Outstanding September 30, 2017 | 560,032 | |
Restricted Stock Awards | Restricted Stock Units | ||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2016 | 11,430 | $ | 10.28 | 3,855,368 | $ | 10.31 | |||||||
Granted | 35,114 | 6.84 | 2,433,601 | 6.84 | |||||||||
Vested | (20,208 | ) | 8.78 | (717,302 | ) | 10.90 | |||||||
Forfeited | — | — | (1,720,629 | ) | 9.61 | ||||||||
Unvested at September 30, 2017 | 26,336 | $ | 6.84 | 3,851,038 | $ | 8.00 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except effective tax rate) | |||||||||||||||
Income before income taxes | $ | 2,584 | $ | 157 | $ | 48,118 | $ | 31,854 | |||||||
Income tax expense | 955 | 1,690 | 13,519 | 7,704 | |||||||||||
Effective tax rate | 37.0 | % | 1,076.4 | % | 28.1 | % | 24.2 | % | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Numerator: | |||||||||||||||
Net income (loss) attributable to common | |||||||||||||||
stockholders | $ | (2,263 | ) | $ | (5,352 | ) | $ | 22,978 | $ | 12,744 | |||||
Less: adjustment for income allocated to participating | |||||||||||||||
securities | — | — | (3,642 | ) | (2,018 | ) | |||||||||
Net income (loss) attributable to common | |||||||||||||||
stockholders - basic and diluted | $ | (2,263 | ) | $ | (5,352 | ) | $ | 19,336 | $ | 10,726 | |||||
Denominator: | |||||||||||||||
Weighted average common shares outstanding - basic | 71,895 | 73,493 | 73,212 | 73,323 | |||||||||||
Plus: dilutive effect of stock options and unvested | |||||||||||||||
restricted stock units | — | — | 948 | 1,407 | |||||||||||
Weighted average common shares outstanding - | |||||||||||||||
diluted | 71,895 | 73,493 | 74,160 | 74,730 | |||||||||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.26 | $ | 0.15 | |||||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.26 | $ | 0.14 | |||||
September 30, 2017 | |||
(in thousands) | |||
2017 (remainder of year) | $ | 14,992 | |
2018 | 51,789 | ||
2019 | 36,534 | ||
2020 | 28,287 | ||
2021 | 22,514 | ||
Thereafter | 68,658 | ||
Total minimum lease payments | $ | 222,774 | |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Minimum rentals (1) | $ | 19,505 | $ | 21,983 | $ | 60,693 | $ | 66,967 | |||||||
Contingent rentals | 4,264 | 4,789 | 12,086 | 12,467 | |||||||||||
Less: Sublease rentals | (55 | ) | (21 | ) | (144 | ) | (139 | ) | |||||||
Total rent expense | $ | 23,714 | $ | 26,751 | $ | 72,635 | $ | 79,295 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Revenues: (1) | |||||||||||||||
Americas | $ | 120,459 | $ | 114,659 | $ | 374,336 | $ | 373,886 | |||||||
Asia Pacific | 80,039 | 90,920 | 303,028 | 326,268 | |||||||||||
Europe | 42,521 | 40,038 | 146,492 | 148,035 | |||||||||||
Total segment revenues | 243,019 | 245,617 | 823,856 | 848,189 | |||||||||||
Other businesses | 254 | 271 | 545 | 667 | |||||||||||
Total consolidated revenues | $ | 243,273 | $ | 245,888 | $ | 824,401 | $ | 848,856 | |||||||
Operating income: (1) | |||||||||||||||
Americas | $ | 24,102 | $ | 16,329 | $ | 71,309 | $ | 50,919 | |||||||
Asia Pacific | 13,264 | 17,303 | 73,294 | 77,687 | |||||||||||
Europe | 5,416 | 1,751 | 27,721 | 16,712 | |||||||||||
Total segment income from operations | 42,782 | 35,383 | 172,324 | 145,318 | |||||||||||
Reconciliation of total segment income (loss) from | |||||||||||||||
operations to income before income taxes: | |||||||||||||||
Other businesses | (6,233 | ) | (7,179 | ) | (16,883 | ) | (19,291 | ) | |||||||
Unallocated corporate and other | (33,864 | ) | (29,419 | ) | (107,728 | ) | (92,394 | ) | |||||||
Income (loss) from operations | 2,685 | (1,215 | ) | 47,713 | 33,633 | ||||||||||
Foreign currency gain (loss), net | (257 | ) | 1,379 | 181 | (1,568 | ) | |||||||||
Interest income | 269 | 178 | 576 | 558 | |||||||||||
Interest expense | (167 | ) | (184 | ) | (539 | ) | (661 | ) | |||||||
Other income (loss) | 54 | (1 | ) | 187 | (108 | ) | |||||||||
Income before income taxes | $ | 2,584 | $ | 157 | $ | 48,118 | $ | 31,854 | |||||||
Depreciation and amortization: | |||||||||||||||
Americas | $ | 1,383 | $ | 1,417 | $ | 4,075 | $ | 4,400 | |||||||
Asia Pacific | 863 | 1,036 | 2,710 | 3,107 | |||||||||||
Europe | 374 | 319 | 1,138 | 1,815 | |||||||||||
Total segment depreciation and amortization | 2,620 | 2,772 | 7,923 | 9,322 | |||||||||||
Other businesses | 1,618 | 1,614 | 5,106 | 5,060 | |||||||||||
Unallocated corporate and other | 3,648 | 4,056 | 11,672 | 11,091 | |||||||||||
Total consolidated depreciation and amortization | $ | 7,886 | $ | 8,442 | $ | 24,701 | $ | 25,473 | |||||||
• | Continued softening in select global regional economies and a cautious retail environment may negatively affect customer purchasing trends. |
• | Foreign exchange rate volatility may continue to impact our reported U.S. Dollar results from our foreign operations. |
• | Consumer spending preferences continue to shift toward e-commerce and away from brick and mortar stores. This has resulted in continued sales growth in our e-commerce channel, as well as on various e-tail sites operated by wholesalers, and contributed to declining foot traffic in our retail locations. |
• | We anticipate lower retail revenues and selling, general and administrative expenses (“SG&A”) as we close less productive stores as leases expire and transfer select company-operated stores to distributors. Distributor revenues are reported within our wholesale channel. |
• | We anticipate that our annual gross margin for 2017 will trend to approximately 50%, as our seasonal sales volumes are lower in our third and fourth quarters. |
• | We have identified reductions in SG&A in the amount of $75 to $85 million which are projected to generate an annual $30 to $35 million improvement in earnings before interest and taxes by 2019, compared to 2016. We expect to achieve approximately $30 million of these SG&A reductions in 2017. We expect to incur charges of approximately $10 to $15 million over the next two years to achieve these SG&A reductions, with approximately $10 million of that being incurred in 2017, of which $7.6 million had been incurred through September 30, 2017. We anticipate closing or transferring approximately 95 and 65 company-operated retail stores in 2017 and 2018, respectively, thereby reducing our total store count to approximately 400 from 558 at the end of 2016. The majority of company-operated store closures will occur as store leases expire. |
• | We anticipate lower retail revenues as we continue to optimize our sales channels. |
• | Revenues for the three months ended September 30, 2017 were $243.3 million, a decrease of $2.6 million, or 1.1%, compared to the same period in 2016. |
• | Cost of sales for the three months ended September 30, 2017 was $119.8 million, a decrease of $3.6 million, or 3.0%, compared to the same period in 2016. |
• | Gross profit for the three months ended September 30, 2017 was $123.5 million, an increase of $1.0 million, or 0.8%. Gross margin increased 100 basis points to 50.8%, compared to the same period in 2016. |
• | SG&A decreased $2.9 million, or 2.3%, after the effects of $3.6 million in strategic consulting and reorganization costs, for the three months ended September 30, 2017 compared to the same period in 2016. |
• | Income from operations improved by $3.9 million, coming in at $2.7 million compared to last year’s third quarter loss of $1.2 million. |
• | Net loss attributable to common stockholders improved $3.1 million to a loss of $2.3 million compared to a loss of $5.4 million for the same period in 2016. Basic and diluted net loss per common share was $0.03 for the three months ended September 30, 2017, compared to $0.07 for the three months ended September 30, 2016. |
Three Months Ended September 30, | Change | |||||||||||||
2017 | 2016 | $ | % | |||||||||||
(in thousands, except per share, margin, unit sales, and average selling price data) | ||||||||||||||
Revenues | $ | 243,273 | $ | 245,888 | $ | (2,615 | ) | (1.1 | )% | |||||
Cost of sales | 119,810 | 123,454 | (3,644 | ) | (3.0 | )% | ||||||||
Gross profit | 123,463 | 122,434 | 1,029 | 0.8 | % | |||||||||
Selling, general and administrative expenses | 120,778 | 123,649 | (2,871 | ) | (2.3 | )% | ||||||||
Income (loss) from operations | 2,685 | (1,215 | ) | 3,900 | 321.0 | % | ||||||||
Foreign currency gain (loss), net | (257 | ) | 1,379 | (1,636 | ) | (118.6 | )% | |||||||
Interest income | 269 | 178 | 91 | 51.1 | % | |||||||||
Interest expense | (167 | ) | (184 | ) | 17 | 9.2 | % | |||||||
Other income (expense) | 54 | (1 | ) | 55 | 5,500.0 | % | ||||||||
Income before income taxes | 2,584 | 157 | 2,427 | 1,545.9 | % | |||||||||
Income tax expense | 955 | 1,690 | (735 | ) | (43.5 | )% | ||||||||
Net income (loss) | 1,629 | (1,533 | ) | 3,162 | 206.3 | % | ||||||||
Dividends on Series A convertible preferred stock | (3,000 | ) | (3,000 | ) | — | — | % | |||||||
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (892 | ) | (819 | ) | (73 | ) | (8.9 | )% | ||||||
Net loss attributable to common stockholders | $ | (2,263 | ) | $ | (5,352 | ) | $ | 3,089 | 57.7 | % | ||||
Net loss per common share: | ||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.04 | 57.1 | % | ||||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | $ | 0.04 | 57.1 | % | ||||
Gross margin | 50.8 | % | 49.8 | % | 100 | 2.0 | % | |||||||
Operating margin | 1.1 | % | (0.5 | )% | 160 | 320.0 | % | |||||||
Footwear unit sales | 13,050 | 12,135 | 915 | 7.5 | % | |||||||||
Average footwear selling price | $ | 18.17 | $ | 19.96 | $ | (1.79 | ) | (9.0 | )% | |||||
Three Months Ended September 30, | Change | Constant Currency Change (1) | ||||||||||||||||||||
2017 | 2016 | $ | % | $ | % | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Wholesale: | ||||||||||||||||||||||
Americas | $ | 41,642 | $ | 41,389 | $ | 253 | 0.6 | % | $ | 153 | 0.4 | % | ||||||||||
Asia Pacific | 41,005 | 45,565 | (4,560 | ) | (10.0 | )% | (4,034 | ) | (8.9 | )% | ||||||||||||
Europe | 23,857 | 21,909 | 1,948 | 8.9 | % | 604 | 2.8 | % | ||||||||||||||
Other businesses | 254 | 271 | (17 | ) | (6.3 | )% | (28 | ) | (10.3 | )% | ||||||||||||
Total wholesale | 106,758 | 109,134 | (2,376 | ) | (2.2 | )% | (3,305 | ) | (3.0 | )% | ||||||||||||
Retail: | ||||||||||||||||||||||
Americas | 57,404 | 56,607 | 797 | 1.4 | % | 689 | 1.2 | % | ||||||||||||||
Asia Pacific | 29,497 | 37,259 | (7,762 | ) | (20.8 | )% | (7,213 | ) | (19.4 | )% | ||||||||||||
Europe | 12,434 | 13,194 | (760 | ) | (5.8 | )% | (1,457 | ) | (11.0 | )% | ||||||||||||
Total retail | 99,335 | 107,060 | (7,725 | ) | (7.2 | )% | (7,981 | ) | (7.5 | )% | ||||||||||||
E-commerce: | ||||||||||||||||||||||
Americas | 21,413 | 16,662 | 4,751 | 28.5 | % | 4,668 | 28.0 | % | ||||||||||||||
Asia Pacific | 9,537 | 8,096 | 1,441 | 17.8 | % | 1,708 | 21.1 | % | ||||||||||||||
Europe | 6,230 | 4,936 | 1,294 | 26.2 | % | 974 | 19.7 | % | ||||||||||||||
Total e-commerce | 37,180 | 29,694 | 7,486 | 25.2 | % | 7,350 | 24.8 | % | ||||||||||||||
Total revenues | $ | 243,273 | $ | 245,888 | $ | (2,615 | ) | (1.1 | )% | $ | (3,936 | ) | (1.6 | )% | ||||||||
Three Months Ended September 30, | Change | Constant Currency Change (1) | |||||||||||||||||||
2017 | 2016 | $ | % | $ | % | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Americas | $ | 120,459 | $ | 114,658 | $ | 5,801 | 5.1 | % | $ | 5,510 | 4.8 | % | |||||||||
Asia Pacific | 80,039 | 90,920 | (10,881 | ) | (12.0 | )% | (9,539 | ) | (10.5 | )% | |||||||||||
Europe | 42,521 | 40,039 | 2,482 | 6.2 | % | 121 | 0.3 | % | |||||||||||||
Total segment revenues | 243,019 | 245,617 | (2,598 | ) | (1.1 | )% | (3,908 | ) | (1.6 | )% | |||||||||||
Other businesses | 254 | 271 | (17 | ) | (6.3 | )% | (28 | ) | (10.3 | )% | |||||||||||
Total revenues | $ | 243,273 | $ | 245,888 | $ | (2,615 | ) | (1.1 | )% | $ | (3,936 | ) | (1.6 | )% | |||||||
Income (loss) from operations: | |||||||||||||||||||||
Americas | $ | 24,102 | $ | 16,329 | $ | 7,773 | 47.6 | % | $ | 7,377 | 45.2 | % | |||||||||
Asia Pacific | 13,264 | 17,303 | (4,039 | ) | (23.3 | )% | 606 | 3.5 | % | ||||||||||||
Europe | 5,416 | 1,751 | 3,665 | 209.4 | % | 570 | 32.6 | % | |||||||||||||
Total segment operating income | 42,782 | 35,383 | 7,399 | 20.9 | % | 8,553 | 24.2 | % | |||||||||||||
Other businesses (2) | (6,233 | ) | (7,179 | ) | 946 | 13.2 | % | 2,149 | 29.9 | % | |||||||||||
Unallocated corporate and other (3) | (33,864 | ) | (29,419 | ) | (4,445 | ) | (15.1 | )% | (4,964 | ) | (16.9 | )% | |||||||||
Total operating income (loss) | $ | 2,685 | $ | (1,215 | ) | $ | 3,900 | 321.0 | % | $ | 5,738 | 472.3 | % | ||||||||
June 30, 2017 | Opened | Closed (1) | September 30, 2017 | ||||||||
Company-operated retail locations: | |||||||||||
Type: | |||||||||||
Kiosk/store-in-store | 84 | — | 9 | 75 | |||||||
Retail stores | 191 | 1 | 17 | 175 | |||||||
Outlet stores | 228 | 3 | 7 | 224 | |||||||
Total | 503 | 4 | 33 | 474 | |||||||
Operating segment: | |||||||||||
Americas | 184 | 1 | 6 | 179 | |||||||
Asia Pacific | 228 | 3 | 25 | 206 | |||||||
Europe | 91 | — | 2 | 89 | |||||||
Total | 503 | 4 | 33 | 474 | |||||||
Constant Currency (1) | |||||
Three Months Ended September 30, | |||||
2017 | 2016 | ||||
Comparable store sales (retail only): (2) | |||||
Americas | 2.8 | % | (2.8 | )% | |
Asia Pacific | (2.9 | )% | (5.8 | )% | |
Europe | (2.1 | )% | (0.9 | )% | |
Global | 0.4 | % | (3.5 | )% | |
Constant Currency (1) | |||||
Three Months Ended September 30, | |||||
2017 | 2016 | ||||
Direct to consumer comparable store sales (includes retail and e-commerce): (2) | |||||
Americas | 9.2 | % | (1.7 | )% | |
Asia Pacific | 3.7 | % | (2.4 | )% | |
Europe | 4.8 | % | (6.7 | )% | |
Global | 7.0 | % | (2.6 | )% | |
Nine Months Ended September 30, | ||||||||||||||
Change | ||||||||||||||
2017 | 2016 | $ | % | |||||||||||
(in thousands, except per share, margin, unit sales and average selling price data) | ||||||||||||||
Revenues | $ | 824,401 | $ | 848,856 | $ | (24,455 | ) | (2.9 | )% | |||||
Cost of sales | 397,547 | 427,416 | (29,869 | ) | (7.0 | )% | ||||||||
Gross profit | 426,854 | 421,440 | 5,414 | 1.3 | % | |||||||||
Selling, general and administrative expenses | 379,141 | 387,807 | (8,666 | ) | (2.2 | )% | ||||||||
Income from operations | 47,713 | 33,633 | 14,080 | 41.9 | % | |||||||||
Foreign currency gain (loss), net | 181 | (1,568 | ) | 1,749 | 111.5 | % | ||||||||
Interest income | 576 | 558 | 18 | 3.2 | % | |||||||||
Interest expense | (539 | ) | (661 | ) | 122 | 18.5 | % | |||||||
Other income (expense), net | 187 | (108 | ) | 295 | 273.1 | % | ||||||||
Income before income taxes | 48,118 | 31,854 | 16,264 | 51.1 | % | |||||||||
Income tax expense | 13,519 | 7,704 | 5,815 | 75.5 | % | |||||||||
Net income | 34,599 | 24,150 | 10,449 | 43.3 | % | |||||||||
Dividends on Series A convertible preferred stock | (9,000 | ) | (9,000 | ) | — | — | % | |||||||
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (2,621 | ) | (2,406 | ) | (215 | ) | (8.9 | )% | ||||||
Net income attributable to common stockholders | $ | 22,978 | $ | 12,744 | $ | 10,234 | 80.3 | % | ||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.26 | $ | 0.15 | $ | 0.11 | 73.3 | % | ||||||
Diluted | $ | 0.26 | $ | 0.14 | $ | 0.12 | 85.7 | % | ||||||
Gross margin | 51.8 | % | 49.6 | % | 220 | 4.3 | % | |||||||
Operating margin | 5.8 | % | 4.0 | % | 180 | 46.2 | % | |||||||
Footwear unit sales | 46,868 | 46,136 | 732 | 1.6 | % | |||||||||
Average footwear selling price | $ | 17.26 | $ | 18.13 | $ | (0.87 | ) | (4.8 | )% | |||||
Nine Months Ended September 30, | Change | Constant Currency Change (1) | ||||||||||||||||||||
2017 | 2016 | $ | % | $ | % | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Wholesale: | ||||||||||||||||||||||
Americas | $ | 169,975 | $ | 170,165 | $ | (190 | ) | (0.1 | )% | $ | (1,611 | ) | (0.9 | )% | ||||||||
Asia Pacific | 177,086 | 197,359 | (20,273 | ) | (10.3 | )% | (18,796 | ) | (9.5 | )% | ||||||||||||
Europe | 95,387 | 97,163 | (1,776 | ) | (1.8 | )% | (2,493 | ) | (2.6 | )% | ||||||||||||
Other businesses | 545 | 667 | (122 | ) | (18.3 | )% | (127 | ) | (19.0 | )% | ||||||||||||
Total wholesale | 442,993 | 465,354 | (22,361 | ) | (4.8 | )% | (23,027 | ) | (4.9 | )% | ||||||||||||
Retail: | ||||||||||||||||||||||
Americas | 145,809 | 150,142 | (4,333 | ) | (2.9 | )% | (4,377 | ) | (2.9 | )% | ||||||||||||
Asia Pacific | 90,458 | 101,097 | (10,639 | ) | (10.5 | )% | (9,943 | ) | (9.8 | )% | ||||||||||||
Europe | 32,924 | 34,699 | (1,775 | ) | (5.1 | )% | (3,006 | ) | (8.7 | )% | ||||||||||||
Total retail | 269,191 | 285,938 | (16,747 | ) | (5.9 | )% | (17,326 | ) | (6.1 | )% | ||||||||||||
E-commerce: | ||||||||||||||||||||||
Americas | 58,552 | 53,579 | 4,973 | 9.3 | % | 4,935 | 9.2 | % | ||||||||||||||
Asia Pacific | 35,483 | 27,812 | 7,671 | 27.6 | % | 8,819 | 31.7 | % | ||||||||||||||
Europe | 18,182 | 16,173 | 2,009 | 12.4 | % | 1,845 | 11.4 | % | ||||||||||||||
Total e-commerce | 112,217 | 97,564 | 14,653 | 15.0 | % | 15,599 | 16.0 | % | ||||||||||||||
Total revenues | $ | 824,401 | $ | 848,856 | $ | (24,455 | ) | (2.9 | )% | $ | (24,754 | ) | (2.9 | )% | ||||||||
Nine Months Ended September 30, | Change | Constant Currency Change (1) | |||||||||||||||||||
2017 | 2016 | $ | % | $ | % | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Americas | $ | 374,336 | $ | 373,886 | $ | 450 | 0.1 | % | $ | (1,053 | ) | (0.3 | )% | ||||||||
Asia Pacific | 303,028 | 326,268 | (23,241 | ) | (7.1 | )% | (19,920 | ) | (6.1 | )% | |||||||||||
Europe | 146,492 | 148,035 | (1,542 | ) | (1.0 | )% | (3,654 | ) | (2.5 | )% | |||||||||||
Total segment revenues | 823,856 | 848,189 | (24,333 | ) | (2.9 | )% | (24,627 | ) | (8.9 | )% | |||||||||||
Other businesses | 545 | 667 | (122 | ) | (18.3 | )% | (127 | ) | (19.0 | )% | |||||||||||
Total revenues | $ | 824,401 | $ | 848,856 | $ | (24,455 | ) | (2.9 | )% | $ | (24,754 | ) | (2.9 | )% | |||||||
Income from operations: | |||||||||||||||||||||
Americas | $ | 71,309 | $ | 50,919 | $ | 20,390 | 40.0 | % | $ | (3,728 | ) | (7.3 | )% | ||||||||
Asia Pacific | 73,294 | 77,687 | (4,393 | ) | (5.7 | )% | (17,139 | ) | (22.1 | )% | |||||||||||
Europe | 27,721 | 16,712 | 11,009 | 65.9 | % | 5,366 | 32.1 | % | |||||||||||||
Total segment operating income | 172,324 | 145,318 | 27,006 | 18.6 | % | (15,501 | ) | (10.7 | )% | ||||||||||||
Other businesses (2) | (16,883 | ) | (19,291 | ) | 2,408 | 12.5 | % | 8,610 | 44.6 | % | |||||||||||
Unallocated corporate and other (3) | (107,728 | ) | (92,394 | ) | (15,334 | ) | (16.6 | )% | 58,011 | 62.8 | % | ||||||||||
Total operating income | $ | 47,713 | $ | 33,633 | $ | 14,080 | 41.9 | % | $ | 51,120 | 152.0 | % | |||||||||
December 31, 2016 | Opened | Closed (1) | September 30, 2017 | ||||||||
Company-operated retail locations: | |||||||||||
Type: | |||||||||||
Kiosk/store-in-store | 98 | — | 23 | 75 | |||||||
Retail stores | 228 | 5 | 58 | 175 | |||||||
Outlet stores | 232 | 13 | 21 | 224 | |||||||
Total | 558 | 18 | 102 | 474 | |||||||
Operating segment: | |||||||||||
Americas | 190 | 2 | 13 | 179 | |||||||
Asia Pacific | 270 | 15 | 79 | 206 | |||||||
Europe | 98 | 1 | 10 | 89 | |||||||
Total | 558 | 18 | 102 | 474 | |||||||
Constant Currency (1) | |||||
Nine Months Ended September 30, | |||||
2017 | 2016 | ||||
Comparable store sales (retail only): (2) | |||||
Americas | (0.3 | )% | (1.4 | )% | |
Asia Pacific | (1.7 | )% | (4.4 | )% | |
Europe | (2.3 | )% | 2.1 | % | |
Global | (1.0 | )% | (2.0 | )% | |
Constant Currency (1) | |||||
Nine Months Ended September 30, | |||||
2017 | 2016 | ||||
Direct to consumer comparable store sales (includes retail and e-commerce): (2) | |||||
Americas | 2.4 | % | 3.0 | % | |
Asia Pacific | 8.4 | % | 2.3 | % | |
Europe | 2.6 | % | 0.3 | % | |
Global | 4.3 | % | 2.4 | % | |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
(in thousands) | |||||||||||
Cash provided by operating activities | $ | 80,415 | $ | 29,354 | $ | 51,061 | |||||
Cash used in investing activities | (12,318 | ) | (14,871 | ) | 2,553 | ||||||
Cash used in financing activities | (37,600 | ) | (12,134 | ) | (25,466 | ) | |||||
Effect of exchange rate changes on cash | 127 | 4,526 | (4,399 | ) | |||||||
Net change in cash and cash equivalents | $ | 30,624 | $ | 6,875 | $ | 23,749 | |||||
Issuer Purchases of Equity Securities | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
July 1 - July 31, 2017 | 1,200,000 | $ | 7.70 | 1,200,000 | $ | 99,469,575 | ||||||||
August 1 - August 31, 2017 | 93,040 | 7.88 | 93,040 | 98,736,244 | ||||||||||
September 1 - September 30, 2017 (2) | 758,500 | 9.34 | 758,500 | 91,653,599 | ||||||||||
Total | 2,051,540 | $ | 8.31 | 2,051,540 | $ | 91,653,599 | ||||||||
Exhibit Number | Description | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
4.1 | ||
31.1† | ||
31.2† | ||
32† | ||
101.INS† | XBRL Instance Document. | |
101.SCH† | XBRL Taxonomy Extension Schema Document. | |
101.CAL† | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF† | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB† | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE† | XBRL Taxonomy Extension Presentation Linkbase Document. | |
CROCS, INC. | ||||
Date: November 7, 2017 | By: | /s/ Carrie W. Teffner | ||
Name: | Carrie W. Teffner | |||
Title: | Executive Vice President and Chief Financial Officer | |||
Date: November 7, 2017 | /s/ Andrew Rees | |
Andrew Rees | ||
President and Chief Executive Officer | ||
Date: November 7, 2017 | /s/ Carrie W. Teffner | |
Carrie W. Teffner | ||
Executive Vice President and Chief Financial Officer | ||
Date: November 7, 2017 | /s/ Andrew Rees | |
Andrew Rees | ||
President and Chief Executive Officer | ||
/s/ Carrie W. Teffner | ||
Carrie W. Teffner | ||
Executive Vice President and Chief Financial Officer | ||
Document And Entity Information - shares |
9 Months Ended | |
|---|---|---|
Sep. 30, 2017 |
Oct. 31, 2017 |
|
| Document And Entity Information[Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Sep. 30, 2017 | |
| Document Fiscal Period Focus | Q3 | |
| Document Fiscal Year Focus | 2017 | |
| Entity Registrant Name | Crocs, Inc. | |
| Entity Central Index Key | 0001334036 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Common stock outstanding (shares) | 69,667,827 | |
| Trading Symbol | CROX |
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Income Statement [Abstract] | ||||
| Revenues | $ 243,273 | $ 245,888 | $ 824,401 | $ 848,856 |
| Cost of sales | 119,810 | 123,454 | 397,547 | 427,416 |
| Gross profit | 123,463 | 122,434 | 426,854 | 421,440 |
| Selling, general and administrative expenses | 120,778 | 123,649 | 379,141 | 387,807 |
| Income (loss) from operations | 2,685 | (1,215) | 47,713 | 33,633 |
| Foreign currency gain (loss), net | (257) | 1,379 | 181 | (1,568) |
| Interest income | 269 | 178 | 576 | 558 |
| Interest expense | (167) | (184) | (539) | (661) |
| Other income (expense) | 54 | (1) | 187 | (108) |
| Income before income taxes | 2,584 | 157 | 48,118 | 31,854 |
| Income tax expense | 955 | 1,690 | 13,519 | 7,704 |
| Net income (loss) | 1,629 | (1,533) | 34,599 | 24,150 |
| Dividends on Series A convertible preferred stock | (3,000) | (3,000) | (9,000) | (9,000) |
| Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (892) | (819) | (2,621) | (2,406) |
| Net income (loss) attributable to common stockholders | $ (2,263) | $ (5,352) | $ 22,978 | $ 12,744 |
| Net income (loss) per common share: | ||||
| Basic (in dollars per share) | $ (0.03) | $ (0.07) | $ 0.26 | $ 0.15 |
| Diluted (in dollars per share) | $ (0.03) | $ (0.07) | $ 0.26 | $ 0.14 |
| Weighted average common shares outstanding - basic (shares) | 71,895 | 73,493 | 73,212 | 73,323 |
| Weighted average common shares outstanding - diluted (shares) | 71,895 | 73,493 | 74,160 | 74,730 |
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income (loss) | $ 1,629 | $ (1,533) | $ 34,599 | $ 24,150 |
| Other comprehensive income (loss): | ||||
| Foreign currency gain (loss), net | 4,124 | (140) | 11,589 | 6,531 |
| Total comprehensive income (loss) | $ 5,753 | $ (1,673) | $ 46,188 | $ 30,681 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowances | $ 49,360 | $ 48,138 |
| Accumulated depreciation | $ 95,512 | $ 88,603 |
| Series A preferred shares authorized (shares) | 1,000,000 | 1,000,000 |
| Series A preferred shares outstanding (shares) | 200,000 | 200,000 |
| Series A preferred shares, liquidation preference | $ 203,000 | $ 203,000 |
| Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred shares authorized (shares) | 4,000,000 | 4,000,000 |
| Preferred shares outstanding (shares) | 0 | 0 |
| Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common shares issued (shares) | 94,700,000 | 93,900,000 |
| Common shares outstanding (shares) | 71,000,000 | 73,600,000 |
| Treasury stock (shares) | 23,700,000 | 20,300,000 |
Basis of Presentation and Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unless otherwise noted in this report, any description of “we,” “us,” or “our” includes Crocs, Inc. (“Crocs” or the “Company”) and its wholly-owned subsidiaries within our reportable operating segments and corporate operations. The Company is engaged in the design, development, manufacturing, worldwide marketing, and distribution of casual lifestyle footwear and accessories for men, women, and children. We strive to be the global leader in the sale of molded footwear featuring fun, comfort, color, and functionality. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, New Zealand, Africa, and the Middle East; and Europe, operating throughout Europe and Russia. The accompanying unaudited condensed consolidated interim financial statements include the Company’s accounts and those of its wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 (“Annual Report”), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report. Our accounting policies did not change in the nine months ended September 30, 2017, except for the new accounting pronouncements adopted as described in Note 2 — Recent Accounting Pronouncements. Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warmer weather, the Company’s business is typically affected by seasonal trends, with higher wholesale sales in its first and second quarters and higher retail sales in its second and third quarters. In addition, our quarterly results of operations may fluctuate significantly as a result of other factors, including general economic conditions or consumer confidence. Accordingly, the Company’s operating results and cash flows for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results and cash flows for any other quarter or for the full year. Transactions with Affiliates The Company receives services from three subsidiaries of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees currently beneficially own all the outstanding shares of the Company’s Series A Convertible Preferred Stock, which is convertible into approximately 16.1% of the Company’s common stock as of September 30, 2017. Blackstone also has the right to nominate two representatives to serve on the Company’s Board of Directors (the “Board”). Certain Blackstone subsidiaries provide various services to the Company, including inventory count, cybersecurity and consulting, and workforce management services. The Company paid $0.1 million and less than $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $0.6 million and $0.6 million for the nine months ended September 30, 2017 and 2016, respectively, for these services. Expenses related to these services are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. Research, Design, and Development Expenses Research, design, and development expenses were $2.3 million and $3.7 million for the three months ended September 30, 2017 and 2016, respectively, and $7.4 million and $9.3 million for the nine months ended September 30, 2017 and 2016, respectively, and are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. Marketing, Advertising, and Promotional Expenses Advertising production and promotion costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of the Company’s promotional expenses result from payments under endorsement contracts. Payments under endorsement contracts are expensed on a straight-line basis over the related annual contract terms. Total marketing expenses inclusive of advertising, production, promotional, and agency expenses reported in ‘Selling, general and administrative expenses’ were:
Prepaid advertising and promotional endorsement costs of $7.3 million and $4.5 million are included in ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets at September 30, 2017 and December 31, 2016, respectively. Depreciation and Amortization Expense Depreciation and amortization expense related to property and equipment and amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses,’ respectively, were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Accounting Policies [Abstract] | |
| Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncement Adopted Inventory Measurement In July 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance to measure in-scope inventory at the lower of cost or net realizable value. The Company adopted this guidance on January 1, 2017 on a prospective basis. The adoption did not have a significant effect on our consolidated financial position or results of operations. New Accounting Pronouncements Not Yet Adopted Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued authoritative guidance intended to clarify those changes to terms and conditions of stock-based compensation awards that are required to be accounted for as modifications of existing stock-based awards. This guidance is to be applied prospectively and becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted during any interim period. The Company does not expect this standard will have a material impact on the Company’s consolidated financial statements. Clarifying the Definition of a Business In January 2017, the FASB issued authoritative guidance intended to clarify the definition of a business, for purposes of determining whether a business has been acquired or sold, and consequently whether transactions should be accounted for as acquisitions or disposals of a business or as acquisitions or disposals of assets. This guidance is to be applied prospectively and becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods. The Company does not expect this standard to have a material impact on its consolidated financial statements. Statement of Cash Flows - Classification and Change in Cash In August 2016, the FASB issued authoritative guidance intended to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. Further, in November 2016, the FASB issued guidance requiring that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. These updates are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted. The guidance should be applied retrospectively unless it is impractical to do so; in which case, the guidance should be applied prospectively as of the earliest date practicable. The Company does not expect this standard to have a material impact on its consolidated financial statements. Prepaid Stored-Value Products In March 2016, the FASB issued guidance related to the recognition of breakage for certain prepaid stored-value products. This update aligns recognition of the financial liabilities related to prepaid stored-value products (for example, prepaid gift cards), with Topic 606, Revenue from Contracts with Customers, for non-financial liabilities. In general, certain of these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. This standard is effective for annual periods (including interim periods) beginning after December 15, 2017, with early adoption permitted. The Company has elected the modified retrospective method of adoption. The Company does not expect this standard to have a material impact on its consolidated financial statements. Leases In February 2016, the FASB issued authoritative guidance intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Additionally, this guidance will require disclosures to help investors and other financial statement users to better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance should be applied under a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company will adopt this guidance beginning with the quarterly reporting period ending March 31, 2019. In July 2017, the Company established an implementation team and engaged external advisers to develop a multi-phase plan to assess the Company’s leasing arrangements, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company is evaluating the full impact this guidance will have on its consolidated financial statements, and expects that adoption will result in significant increases in lease-related assets and liabilities on its consolidated balance sheet. Revenue Recognition In May 2014, the FASB issued authoritative guidance related to new accounting requirements for the recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services. Subsequent to the release of this guidance, the FASB has issued additional updates intended to provide interpretive clarifications and to reduce the cost and complexity of applying the new revenue recognition standard both at transition and on an ongoing basis. The new standard and related amendments are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Upon adoption of the new standard, the use of either a full retrospective or modified retrospective transition method is permitted. In December 2016, the Company established an implementation team and engaged external advisers to develop a multi-phase plan to assess the Company’s business and contracts, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company has elected the modified retrospective method of adoption. The Company has completed a review of its revenue contracts and terms and is finalizing its assessment regarding the effects of adoption of the new standard on its consolidated financial statements and disclosures. Concurrent with adoption, the Company will change its presentation of product returns in the condensed consolidated balance sheets by reporting an asset for the right to receive returned product and a return liability. In addition, customer payments received in advance of delivery will be reported as a contract liability in the Company’s condensed consolidated balance sheets. The Company is continuing its evaluation of the impact of any additional accounting and disclosure changes on its business processes, controls and systems. The Company will provide additional information regarding expected effects on its consolidated financial statements and disclosures in its next annual report. Other Pronouncements Other new pronouncements issued but not effective until after September 30, 2017 are not expected to have a material impact on the Company’s consolidated financial statements. |
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | INVENTORIES The following table summarizes inventories by major classification:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets, Net | INTANGIBLE ASSETS, NET ‘Intangible assets, net’ reported in the condensed consolidated balance sheets consist of the following:
(1) Primarily consists of capitalized software project costs under development. Estimated future annual amortization expense of intangible assets is:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses And Other Liabilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Expenses And Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES The following table summarizes accrued expenses and other liabilities:
(1) Includes customs duty legal accrual liability at December 31, 2016, which was settled in April 2017. (2) Includes current liabilities related to Series A preferred stock dividends at September 30, 2017 and December 31, 2016. Other accrued liabilities at December 31, 2016 also includes net derivative liabilities. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements U.S. GAAP for fair value establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The Company utilizes a combination of market and income approaches to value derivative instruments. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy and the related inputs are as follows:
The financial assets and liabilities that are measured and recorded at fair value on a recurring basis consist of the Company’s derivative instruments. The Company’s derivative instruments are foreign currency forward exchange contracts. The Company manages credit risk of its derivative instruments on the basis of its net exposure with its counterparty and has elected to measure the fair value in the same manner. All of the Company’s derivative instruments are classified as Level 2 and are reported in the condensed consolidated balance sheets within ‘Prepaid expenses and other assets’ at September 30, 2017, and ‘Accrued expenses and other liabilities’ at December 31, 2016. There were no transfers between Level 1 or Level 2, nor were there any outstanding derivative instruments classified as Level 3 as of September 30, 2017 or December 31, 2016. The fair value of the Company’s derivative instruments was an asset of $0.3 million and a liability of $0.2 million at September 30, 2017 and December 31, 2016, respectively. See Note 7 — Derivative Financial Instruments for more information. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate their fair value as recorded due to the short-term maturity of these instruments. The Company’s borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The fair values of the Company’s outstanding notes payable approximate their carrying values at September 30, 2017 and December 31, 2016, based on interest rates currently available to the Company for similar borrowings.
Non-Financial Assets and Liabilities The Company’s non-financial assets, which primarily consist of property and equipment, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. Impairment is reported in ‘Selling, general and administrative expenses’ in the Company’s condensed consolidated statements of operations. The fair values of these assets were determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. During the three and nine month periods ended September 30, 2017 and 2016, the Company recorded non-cash impairment to reduce the carrying values of certain retail store assets to their estimated fair value, as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company transacts business in various foreign countries and is therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar amounts of revenues, costs, and certain foreign currency monetary assets and liabilities. In order to manage exposure to fluctuations in foreign currency and to reduce the volatility in earnings caused by fluctuations in foreign exchange rates, the Company enters into forward contracts to buy and sell foreign currency. By policy, the Company does not enter into these contracts for trading purposes or speculation. Counterparty default risk is considered low because the forward contracts that the Company enters into are over-the-counter instruments transacted with highly-rated financial institutions. The Company was not required to and did not post collateral as of September 30, 2017 or December 31, 2016. The Company’s derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets. The Company reports derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gain (loss), net’ in the condensed consolidated statements of operations. For the condensed consolidated statements of cash flows, the Company classifies cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by operating activities.’ Results of Derivative Activities The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were:
The notional amounts of outstanding foreign currency forward exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
Amounts reported in ‘Foreign currency gain (loss), net’ in the condensed consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility and Bank Borrowings |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility and Bank Borrowings | REVOLVING CREDIT FACILITY AND BANK BORROWINGS The Company’s borrowings consist of:
Senior Revolving Credit Facility In December 2011, the Company entered into a revolving credit facility (“the Facility”), pursuant to an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders. The Credit Agreement, as amended, contains certain covenants that restrict certain actions by the Company, including limitations on: (i) stock repurchases to $50.0 million per year, subject to certain restrictions; and (ii) capital expenditures and commitments to $50.0 million per year. The Credit Agreement also requires the Company to meet certain financial covenant ratios that become effective when average outstanding borrowings under the Credit Agreement, including letters of credit, exceed $20.0 million during certain periods or if the outstanding borrowings exceed the borrowing base. If the financial covenant ratios are in effect, the Company must maintain a minimum fixed charge coverage ratio of 1.10 to 1.00, and a maximum leverage ratio of 2.00 to 1.00. As of September 30, 2017, the Company was in compliance with all financial covenants. As of September 30, 2017, the total commitments available from the lenders under the Facility were $80.0 million. At September 30, 2017, the Company had no outstanding borrowings and $1.3 million in outstanding letters of credit under the Facility, which reduce the amounts available for borrowing under the terms of the Facility. As of September 30, 2017 and December 31, 2016, the Company had $78.7 million of available borrowing capacity under the Facility. On October 13, 2017, the Company entered into the Fourteenth Amendment to the Amended and Restated Credit Agreement which: (i) increased the total commitments under the Facility to $100.0 million from $80.0 million, (ii) added an additional lender under the Facility, (iii) increased the amount of average outstanding borrowings at which financial covenant ratios become effective during certain periods to the lesser of $40.0 million or 40% of the total commitments, (iv) permits certain intercompany loans of up to $375.0 million, and (v) amended certain other provisions to be more favorable to the Company. Asia Revolving Credit Facility The Company’s revolving credit facility agreement (the “Asia Facility”) with HSBC Bank (China) Company Limited, Shanghai Branch (“HSBC”), provides the Company uncommitted dual currency revolving loan facilities of up to 40.0 million Chinese Renminbi (“RMB”), or $6.0 million, with a combined facility limit of RMB 60.0 million, or $9.0 million. As of September 30, 2017 and December 31, 2016, borrowings under the Asia Facility remained suspended at the discretion of HSBC. The Asia Facility will mature in February 2021. Notes Payable Notes payable incur interest at fixed rates ranging from 1.95% to 2.83%. The maturities of the Company’s debt and capital lease obligations were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity (Notes) |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Equity [Abstract] | |
| Equity | EQUITY Common Stock The Company has one class of common stock with a par value of $0.001 per share. There are 250 million shares of common stock authorized for issuance. Holders of common stock are entitled to one vote per share on all matters presented to the stockholders. Common Stock Repurchase Program For the three and nine months ended September 30, 2017, the Company repurchased 2.1 million and 3.4 million shares of its common stock, respectively, at a cost of $17.1 million and $27.1 million, including commissions, respectively, including unsettled trades for 150,000 shares totaling $1.4 million, which were completed on October 2, 2017. During the three and nine months ended September 30, 2016, the Company did not repurchase any of its common stock. As of September 30, 2017, the Company had remaining authorization to repurchase approximately $91.7 million of its common stock, subject to restrictions under its Credit Agreement. See Part II - Other Information, Item 2. ‘Unregistered Sales of Equity Securities’ for further details on repurchases of common stock during the three months ended September 30, 2017. Preferred Stock The Company has authorized and available for issuance 4.0 million shares of preferred stock. None of these preferred shares are issued or outstanding. Series A Convertible Preferred Stock The Company is authorized to issue up to 1.0 million shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”), par value $0.001 per share, of which 0.2 million shares were issued to Blackstone and certain of its permitted transferees in January 2014. The Series A Preferred Stock has a stated value of $1,000 per share. Participation Rights and Dividends Holders of the Series A Preferred Stock are entitled to receive dividends declared or paid on the Company’s common stock and are entitled to vote together with the holders of the Company’s common stock as a single class, in each case, on an as-converted basis. Holders of the Series A Preferred Stock also have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. The Series A Preferred Stock ranks senior to the Company’s common stock with respect to rights to preferred dividends, liquidation, winding-up, and dissolution. Holders of Series A Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6% per annum. If the Company fails to make timely dividend payments, the dividend rate will increase to 8% per annum until such time as all accrued but unpaid dividends have been paid in full. As of September 30, 2017 and December 31, 2016, the Company had accrued preferred dividends of $3.0 million, which are reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets. These accrued dividends were paid in cash in October 2017 and January 2017, respectively. Conversion Rights of the Company and Blackstone The Series A Preferred Stock is convertible at the option of the holders at any time into shares of common stock at a conversion price of $14.50 per share, subject to adjustment for customary anti-dilution provisions. Beginning January 27, 2017, provided the closing price of the Company’s common stock has been equal to or greater than $29.00 for 20 consecutive trading days, the Company may elect to convert all or a portion of the Series A Preferred Stock into an equivalent number of shares of common stock. At September 30, 2017, had the holders converted or the Company been entitled to exercise its conversion right, the Series A Preferred Stock would have been convertible into 13,793,100 shares of common stock. Redemption Rights of the Company and Blackstone The Company has the option to redeem the Series A Preferred Stock anytime on or after January 27, 2022, for 100% of the stated redemption value of $200 million plus all accrued and unpaid dividends. Blackstone has the option to cause the redemption of the Series A Preferred Stock any time after January 27, 2022, or upon a change in control. Further, upon certain change of control events, Blackstone can require the Company to repurchase the Series A Preferred Stock at 101% of the redemption value plus all accrued and unpaid dividends. The carrying value of the Series A Preferred Stock is accreted up to its $200 million redemption value on a straight-line basis through the redemption date. |
Share-based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation | SHARE-BASED COMPENSATION The Company’s share-based compensation awards are issued under the 2015 Equity Incentive Plan (“2015 Plan”) and two predecessor plans, the 2005 Equity Incentive Plan and the 2007 Equity Incentive Plan (the “2007 Plan”). Any awards that expire or are forfeited under the 2007 Plan become available for issuance under the 2015 Plan. There were 7,928,141 shares of common stock reserved and authorized for issuance at September 30, 2017, under all plans, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization. Refer to Notes 1 and 11 of the Company’s Annual Report for a detailed description of the Company’s share-based compensation awards, including information related to grant date fair value, vesting terms, performance, and other conditions. Share-Based Compensation Expense Pre-tax share-based compensation expense reported in the Company’s condensed consolidated statements of operations was as follows:
Stock Option Activity Stock option activity during the nine months ended September 30, 2017 was:
As of September 30, 2017, the Company had $0.5 million of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 2.51 years. The weighted average exercise price of vested options was $12.98 per share. Restricted Stock Awards and Restricted Stock Units Activity The Company grants time-based Restricted Stock Awards (“RSAs”) as well as time-based and performance-based Restricted Stock Units (“RSUs”). RSA and RSU activity during the nine months ended September 30, 2017 was:
RSAs vested during the nine months ended September 30, 2017 consisted entirely of time-based awards. As of September 30, 2017, unrecognized share-based compensation expense for RSAs was $0.2 million, which is expected to amortize over a remaining weighted average period of 0.68 years. RSUs vested during the nine months ended September 30, 2017 consisted of 648,985 time-based awards and 68,317 performance-based awards. As of September 30, 2017, unrecognized share-based compensation expenses for time-based and performance-based awards were $11.6 million and $4.7 million, respectively, and are expected to amortize over a remaining weighted average period of 1.98 years. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | INCOME TAXES Income tax expense and effective tax rates were as follows:
The decrease in the effective tax rate for the three months ended September 30, 2017, compared to the same period in 2016, is primarily due to the atypical rate in 2016 caused by the amount of income tax expense compared to the low income before income taxes for the period. Additionally, there is an impact due to operating losses in certain jurisdictions where the Company has determined that it is not more likely than not to realize the associated tax benefits, partially offset by tax expense recorded in profitable jurisdictions. The increase in effective tax rate for the nine months ended September 30, 2017, compared to the same period in 2016, was driven primarily by tax expense recorded in profitable jurisdictions, partially offset by operating losses in certain jurisdictions where the Company has determined that it is not more likely than not to realize the associated tax benefits. The Company’s effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to differences in income tax rates between U.S. and foreign jurisdictions as well as book losses in certain jurisdictions for which tax benefits cannot be recognized. There were no significant or unusual discrete tax items during the three and nine months ended September 30, 2017. The Company had unrecognized tax benefits of $5.1 million and $4.8 million at September 30, 2017 and December 31, 2016, respectively, and the Company does not expect any significant changes in tax benefits in the next twelve months. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per common share (“EPS”) for the three and nine months ended September 30, 2017 and 2016 were as follows:
Diluted EPS is calculated using the two-class method. For the three months ended September 30, 2016, 1.7 million options and restricted stock units were excluded from the calculation of diluted EPS under the two-class method because the effect was anti-dilutive. For the nine months ended September 30, 2017, 0.7 million stock options and RSUs, and all potentially convertible Series A Preferred Stock shares were excluded from the calculation of diluted EPS under the two-class method because the effect would be anti-dilutive. If converted, Series A Preferred Stock would represent approximately 16.1% of the Company’s common stock outstanding, or 13.8 million additional common shares as of September 30, 2017. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Rental Commitments and Contingencies The Company rents retail store, office and warehouse space, vehicles, and equipment under operating leases expiring at various dates through 2033. Rent expense for leases with escalations or rent holidays is recognized on a straight-line basis over the lease term beginning on the lease inception date. Certain leases also provide for contingent rents, which are generally determined as a percent of sales in excess of specified levels. A contingent rent liability is recognized together with the corresponding rent expense when specified levels have been achieved or when the Company determines that achieving the specified levels during the period is probable. Future minimum lease payments under operating leases were as follows:
Minimum sublease rental income of $0.2 million under non-cancelable subleases, and contingent rentals, which may be paid under certain retail leases on a basis of percentage of sales in excess of stipulated amounts, are excluded from the commitment schedule. Rent expense under operating leases are as follows:
(1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.5 million and $2.5 million during the three months ended September 30, 2017 and 2016, respectively, and $7.7 million during each of the nine months ended September 30, 2017 and 2016, respectively. Purchase Commitments Under the terms of an annual supply agreement, the Company guarantees payment for certain third-party manufacturer purchases of raw materials used in the manufacture of its products, up to a maximum of €3.5 million (approximately $4.1 million as of September 30, 2017). As of September 30, 2017, the Company had purchase commitments with other third-party manufacturers, primarily for materials and supplies used in the manufacture of the Company’s products, for an aggregate of $114.9 million. The Company also renewed agreements with two service providers, for three years at $5.0 million per year, and 18 months at $2.0 million per year, respectively. Government Tax Audits The Company is regularly subject to, and is currently undergoing, audits by various tax authorities in the United States and several foreign jurisdictions, including customs duties, import and other taxes for prior tax years. See Note 15 — Legal Proceedings for additional information. Other During its normal course of business, the Company may make certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain matters. The Company cannot determine a range of estimated future payments and has not recorded any liability for indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets. See Note 15 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments and Geographic Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Segments and Geographic Information | OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION The Company has three reportable operating segments based on the geographic nature of its operations: the Americas, Asia Pacific, and Europe. In addition, the ‘Other businesses’ category aggregates insignificant operating segments that do not meet the reportable segment threshold, including manufacturing operations located in Mexico and Italy, and corporate operations. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. Revenues for ‘Other businesses’ include non-footwear product sales to external customers that are excluded from the measurement of segment operating revenues and income. Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative, and other expenses. Segment profits or losses include adjustments to eliminate inter-segment sales. Reconciling items between segment operating income and income (loss) from operations consist of other businesses and unallocated corporate and other expenses, as well as inter-segment eliminations. The following tables set forth information related to reportable operating segments:
(1) Revenues and operating results reflect targeted reductions of company-operated stores and discount channel sales, a focus on higher margin core molded products, and continued focus on reducing selling, general and administrative expenses. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Proceedings |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Legal proceedings | LEGAL PROCEEDINGS The Company was subjected to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010 and 2014. On January 13, 2015, the Company was notified about the issuance of assessments totaling approximately $4.6 million, plus interest and penalties, for the period January 2010 through May 2011. The Company has disputed these assessments and asserted defenses to the claims. On February 25, 2015, the Company received additional assessments totaling approximately $10.5 million, plus interest and penalties, related to the remainder of the audit period. The Company has also disputed these assessments and asserted defenses to these claims in administrative appeals. On August 29, 2017, the Company received a favorable ruling on its appeal of the first assessment, which the Company expects the taxing authority to appeal. The remaining assessments are still pending appeal. In the event that the definitive resolution of these administrative appeals is adverse to the Company, the Company has recourse to further judicial processes, which would likely require the posting of a bond. The Company has not recorded these items within the condensed consolidated financial statements as it is not possible at this time to predict the timing or outcome of this matter or to estimate a potential amount of loss, if any. The Company was subjected to an audit by U.S. Customs & Border Protection ("CBP") in respect of the period from 2006 to 2010. In October 2013, CBP issued their final audit report. In that report CBP projected that unpaid duties totaling approximately $12.4 million were due for the period under review and recommended collection of the duties due. On April 20, 2017, CBP agreed to settle the matter and accepted the Company’s previously tendered payment of $7 million. This matter is now closed. The settlement was reported in the Company’s condensed financial statements as of March 31, 2017. For all other claims and other disputes, the Company has accrued estimated losses of $0.5 million within ‘Accrued expenses and other liabilities’ in its condensed consolidated balance sheet as of September 30, 2017. Where the Company is able to estimate possible losses or a range of possible losses, the Company estimates that as of September 30, 2017, it is reasonably possible that losses associated with these claims and other disputes could potentially exceed amounts accrued by the Company by up to $0.1 million. The Company is subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims. The Company is not party to any other pending legal proceedings that it believes would reasonably have a material adverse impact on its business, financial position, results of operations, or cash flows. |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | Unless otherwise noted in this report, any description of “we,” “us,” or “our” includes Crocs, Inc. (“Crocs” or the “Company”) and its wholly-owned subsidiaries within our reportable operating segments and corporate operations. The Company is engaged in the design, development, manufacturing, worldwide marketing, and distribution of casual lifestyle footwear and accessories for men, women, and children. We strive to be the global leader in the sale of molded footwear featuring fun, comfort, color, and functionality. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, New Zealand, Africa, and the Middle East; and Europe, operating throughout Europe and Russia. |
| Principles of Consolidation | The accompanying unaudited condensed consolidated interim financial statements include the Company’s accounts and those of its wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 (“Annual Report”), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report. |
| Seasonality of Business | Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warmer weather, the Company’s business is typically affected by seasonal trends, with higher wholesale sales in its first and second quarters and higher retail sales in its second and third quarters. In addition, our quarterly results of operations may fluctuate significantly as a result of other factors, including general economic conditions or consumer confidence. Accordingly, the Company’s operating results and cash flows for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results and cash flows for any other quarter or for the full year. |
| Transactions with Affiliates | Transactions with Affiliates The Company receives services from three subsidiaries of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees currently beneficially own all the outstanding shares of the Company’s Series A Convertible Preferred Stock, which is convertible into approximately 16.1% of the Company’s common stock as of September 30, 2017. Blackstone also has the right to nominate two representatives to serve on the Company’s Board of Directors (the “Board”). Certain Blackstone subsidiaries provide various services to the Company, including inventory count, cybersecurity and consulting, and workforce management services. The Company paid $0.1 million and less than $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $0.6 million and $0.6 million for the nine months ended September 30, 2017 and 2016, respectively, for these services. Expenses related to these services are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. |
| Research, Design and Development Expenses | Research, Design, and Development Expenses Research, design, and development expenses were $2.3 million and $3.7 million for the three months ended September 30, 2017 and 2016, respectively, and $7.4 million and $9.3 million for the nine months ended September 30, 2017 and 2016, respectively, and are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. |
| Marketing, Advertising and Promotional Expenses | Marketing, Advertising, and Promotional Expenses Advertising production and promotion costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of the Company’s promotional expenses result from payments under endorsement contracts. Payments under endorsement contracts are expensed on a straight-line basis over the related annual contract terms. |
| Recently Accounting Pronouncements | New Accounting Pronouncement Adopted Inventory Measurement In July 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance to measure in-scope inventory at the lower of cost or net realizable value. The Company adopted this guidance on January 1, 2017 on a prospective basis. The adoption did not have a significant effect on our consolidated financial position or results of operations. New Accounting Pronouncements Not Yet Adopted Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued authoritative guidance intended to clarify those changes to terms and conditions of stock-based compensation awards that are required to be accounted for as modifications of existing stock-based awards. This guidance is to be applied prospectively and becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted during any interim period. The Company does not expect this standard will have a material impact on the Company’s consolidated financial statements. Clarifying the Definition of a Business In January 2017, the FASB issued authoritative guidance intended to clarify the definition of a business, for purposes of determining whether a business has been acquired or sold, and consequently whether transactions should be accounted for as acquisitions or disposals of a business or as acquisitions or disposals of assets. This guidance is to be applied prospectively and becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods. The Company does not expect this standard to have a material impact on its consolidated financial statements. Statement of Cash Flows - Classification and Change in Cash In August 2016, the FASB issued authoritative guidance intended to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. Further, in November 2016, the FASB issued guidance requiring that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. These updates are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted. The guidance should be applied retrospectively unless it is impractical to do so; in which case, the guidance should be applied prospectively as of the earliest date practicable. The Company does not expect this standard to have a material impact on its consolidated financial statements. Prepaid Stored-Value Products In March 2016, the FASB issued guidance related to the recognition of breakage for certain prepaid stored-value products. This update aligns recognition of the financial liabilities related to prepaid stored-value products (for example, prepaid gift cards), with Topic 606, Revenue from Contracts with Customers, for non-financial liabilities. In general, certain of these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. This standard is effective for annual periods (including interim periods) beginning after December 15, 2017, with early adoption permitted. The Company has elected the modified retrospective method of adoption. The Company does not expect this standard to have a material impact on its consolidated financial statements. Leases In February 2016, the FASB issued authoritative guidance intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Additionally, this guidance will require disclosures to help investors and other financial statement users to better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance should be applied under a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company will adopt this guidance beginning with the quarterly reporting period ending March 31, 2019. In July 2017, the Company established an implementation team and engaged external advisers to develop a multi-phase plan to assess the Company’s leasing arrangements, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company is evaluating the full impact this guidance will have on its consolidated financial statements, and expects that adoption will result in significant increases in lease-related assets and liabilities on its consolidated balance sheet. Revenue Recognition In May 2014, the FASB issued authoritative guidance related to new accounting requirements for the recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services. Subsequent to the release of this guidance, the FASB has issued additional updates intended to provide interpretive clarifications and to reduce the cost and complexity of applying the new revenue recognition standard both at transition and on an ongoing basis. The new standard and related amendments are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Upon adoption of the new standard, the use of either a full retrospective or modified retrospective transition method is permitted. In December 2016, the Company established an implementation team and engaged external advisers to develop a multi-phase plan to assess the Company’s business and contracts, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company has elected the modified retrospective method of adoption. The Company has completed a review of its revenue contracts and terms and is finalizing its assessment regarding the effects of adoption of the new standard on its consolidated financial statements and disclosures. Concurrent with adoption, the Company will change its presentation of product returns in the condensed consolidated balance sheets by reporting an asset for the right to receive returned product and a return liability. In addition, customer payments received in advance of delivery will be reported as a contract liability in the Company’s condensed consolidated balance sheets. The Company is continuing its evaluation of the impact of any additional accounting and disclosure changes on its business processes, controls and systems. The Company will provide additional information regarding expected effects on its consolidated financial statements and disclosures in its next annual report. Other Pronouncements Other new pronouncements issued but not effective until after September 30, 2017 are not expected to have a material impact on the Company’s consolidated financial statements. |
| Derivatives Financial Instruments | The Company’s derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets. The Company reports derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gain (loss), net’ in the condensed consolidated statements of operations. For the condensed consolidated statements of cash flows, the Company classifies cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by operating activities. |
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Marketing Expenses | Total marketing expenses inclusive of advertising, production, promotional, and agency expenses reported in ‘Selling, general and administrative expenses’ were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Depreciation Expense | Depreciation and amortization expense related to property and equipment and amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses,’ respectively, were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories | The following table summarizes inventories by major classification:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets | Intangible assets, net’ reported in the condensed consolidated balance sheets consist of the following:
(1) Primarily consists of capitalized software project costs under development. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Future Amortization of Intangible Assets | Estimated future annual amortization expense of intangible assets is:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses And Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Expenses & Other Liabilities | The following table summarizes accrued expenses and other liabilities:
(1) Includes customs duty legal accrual liability at December 31, 2016, which was settled in April 2017. (2) Includes current liabilities related to Series A preferred stock dividends at September 30, 2017 and December 31, 2016. Other accrued liabilities at December 31, 2016 also includes net derivative liabilities. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Company's Notes Payable | The fair values of the Company’s outstanding notes payable approximate their carrying values at September 30, 2017 and December 31, 2016, based on interest rates currently available to the Company for similar borrowings.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Company's Non-financial Assets | The fair values of these assets were determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. During the three and nine month periods ended September 30, 2017 and 2016, the Company recorded non-cash impairment to reduce the carrying values of certain retail store assets to their estimated fair value, as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Values of Derivative Assets and Liabilities | The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions | The notional amounts of outstanding foreign currency forward exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts | Amounts reported in ‘Foreign currency gain (loss), net’ in the condensed consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility and Bank Borrowings (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components Of Our Consolidated Debt And Capital Lease Obligations | The Company’s borrowings consist of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maturities of Debt Obligation | The maturities of the Company’s debt and capital lease obligations were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share-based Compensation Expense | Pre-tax share-based compensation expense reported in the Company’s condensed consolidated statements of operations was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Option Activity | Stock option activity during the nine months ended September 30, 2017 was:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Restricted Stock Award And Restricted Stock Unit Activity | RSA and RSU activity during the nine months ended September 30, 2017 was:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Tax Expense and Effective Tax Rates | Income tax expense and effective tax rates were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary Of Basic And Diluted Earnings Per Share | Basic and diluted earnings per common share (“EPS”) for the three and nine months ended September 30, 2017 and 2016 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Rental Expense | Rent expense under operating leases are as follows:
(1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.5 million and $2.5 million during the three months ended September 30, 2017 and 2016, respectively, and $7.7 million during each of the nine months ended September 30, 2017 and 2016, respectively. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments and Geographic Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Information Related to Reportable Operating Segments | The following tables set forth information related to reportable operating segments:
(1) Revenues and operating results reflect targeted reductions of company-operated stores and discount channel sales, a focus on higher margin core molded products, and continued focus on reducing selling, general and administrative expenses. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
| Related Party Transaction [Line Items] | |||||
| Research, design and development expense | $ 2.3 | $ 3.7 | $ 7.4 | $ 9.3 | |
| Prepaid advertising and promotional endorsement costs | 7.3 | $ 7.3 | $ 4.5 | ||
| Series A Preferred Stock [Member] | |||||
| Related Party Transaction [Line Items] | |||||
| Percentage of common stock if-converted Series A preferred stock (percent) | 16.10% | ||||
| Blackstone [Member] | |||||
| Related Party Transaction [Line Items] | |||||
| Paid for services received | $ 0.1 | $ 0.1 | $ 0.6 | $ 0.6 | |
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Advertising Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
| Advertising, production, promotional, and agency expenses | $ 9,946 | $ 11,066 | $ 49,614 | $ 48,664 |
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Property, Plant and Equipment [Line Items] | ||||
| Total depreciation and amortization expense | $ 3,499 | $ 3,599 | $ 10,964 | $ 11,213 |
| Total amortization expense | 4,387 | 4,843 | 13,737 | 14,260 |
| Depreciation and amortization | 7,886 | 8,442 | 24,701 | 25,473 |
| Selling, General and Administrative Expenses [Member] | ||||
| Property, Plant and Equipment [Line Items] | ||||
| Total depreciation and amortization expense | 2,945 | 3,179 | 9,287 | 9,987 |
| Total amortization expense | 3,304 | 3,637 | 10,251 | 10,385 |
| Cost of Sales [Member] | ||||
| Property, Plant and Equipment [Line Items] | ||||
| Total depreciation and amortization expense | 554 | 420 | 1,677 | 1,226 |
| Total amortization expense | $ 1,083 | $ 1,206 | $ 3,486 | $ 3,875 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Finished goods | $ 136,665 | $ 142,333 |
| Raw materials | 2,772 | 4,042 |
| Work-in-progress | 845 | 654 |
| Total inventories | $ 140,282 | $ 147,029 |
Intangible Assets, Net (Schedule Of Future Amortization Of Intangible Assets) (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| 2017 (remainder of year) | $ 4,404 |
| 2018 | 16,284 |
| 2019 | 14,005 |
| 2020 | 11,309 |
| 2021 | 10,944 |
| Thereafter | 1,151 |
| Net carrying amount of finite-lived intangible assets | $ 58,097 |
Intangible Assets, Net (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Finite-Lived Intangible Assets [Line Items] | ||||
| Amortization expense | $ 4,387 | $ 4,843 | $ 13,737 | $ 14,260 |
| Selling, General and Administrative Expenses [Member] | ||||
| Finite-Lived Intangible Assets [Line Items] | ||||
| Amortization expense | 3,304 | 3,637 | 10,251 | 10,385 |
| Cost of Sales [Member] | ||||
| Finite-Lived Intangible Assets [Line Items] | ||||
| Amortization expense | $ 1,083 | $ 1,206 | $ 3,486 | $ 3,875 |
Accrued Expenses And Other Liabilities (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Payables and Accruals [Abstract] | ||
| Accrued compensation and benefits | $ 31,010 | $ 20,898 |
| Fulfillment, freight and duties | 11,784 | 14,572 |
| Professional services | 11,578 | 10,900 |
| Sales/use and value added taxes payable | 5,027 | 4,978 |
| Accrued rent and occupancy | 6,551 | 7,335 |
| Royalties payable and deferred revenue | 6,758 | 7,475 |
| Other | 12,128 | 12,124 |
| Total accrued expenses and other liabilities | $ 84,836 | $ 78,282 |
Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
| Level 3 [Member] | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Retail store asset impairment | $ 150 | $ 930 | $ 150 | $ 1,695 | |
| Fair Value, Measurements, Recurring [Member] | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Fair value of Company's derivative asset | 300 | 300 | |||
| Fair value of Company's derivative liability | $ 200 | ||||
| Carrying Value [Member] | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Borrowings and capital lease obligations | 1,105 | 1,105 | 2,378 | ||
| Fair Value [Member] | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Borrowings and capital lease obligations | $ 1,105 | $ 1,105 | $ 2,378 | ||
Derivative Financial Instruments (Fair Value of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Foreign Currency Derivatives [Abstract] | ||
| Foreign currency forward contract derivatives | $ 285 | $ (157) |
| Level 2 [Member] | ||
| Foreign Currency Derivatives [Abstract] | ||
| Derivative asset | 1,118 | 6,541 |
| Derivative liability | (833) | (6,698) |
| Foreign currency forward contract derivatives | $ 285 | $ (157) |
Derivative Financial Instruments (Gains / Losses on Foreign Currency Derivatives) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
| Foreign currency transaction gains (losses) | $ (674) | $ 3,039 | $ 1,120 | $ 11,804 |
| Foreign currency forward exchange contracts gains (losses) | 417 | (1,660) | (939) | (13,372) |
| Foreign currency gain (loss), net | $ (257) | $ 1,379 | $ 181 | $ (1,568) |
Revolving Credit Facility and Bank Borrowings (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Capital lease obligations | $ 47 | $ 49 |
| Total borrowings and capital lease obligations | 1,105 | 2,378 |
| Less: current portion | 1,070 | 2,338 |
| Non-current portion | 35 | 40 |
| Notes Payable [Member] | ||
| Debt Instrument [Line Items] | ||
| Notes payable | $ 1,058 | $ 2,329 |
Revolving Credit Facility and Bank Borrowings (Notes Payable) (Details) - Notes Payable [Member] |
Sep. 30, 2017 |
|---|---|
| Minimum [Member] | |
| Debt Instrument [Line Items] | |
| Notes payable stated interest rate (percent) | 1.95% |
| Maximum [Member] | |
| Debt Instrument [Line Items] | |
| Notes payable stated interest rate (percent) | 2.826% |
Revolving Credit Facility and Bank Borrowings (Maturities Of Debt Obligations) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Debt Disclosure [Abstract] | ||
| 2017 (remainder of year) | $ 1,065 | |
| 2018 | 13 | |
| 2019 | 13 | |
| 2020 | 11 | |
| 2021 | 3 | |
| Total borrowings and capital lease obligations | 1,105 | $ 2,378 |
| Less: current portion | 1,070 | 2,338 |
| Non-current portion | $ 35 | $ 40 |
Share-based Compensation (Narrative) (Details) |
Sep. 30, 2017
shares
|
|---|---|
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Shares authorized (shares) | 7,928,141 |
Share-based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Total share-based compensation expense | $ 2,906 | $ 2,108 | $ 6,851 | $ 8,006 |
| Cost of Sales [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Total share-based compensation expense | 93 | 135 | 293 | 386 |
| Selling, General and Administrative Expenses [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
| Total share-based compensation expense | $ 2,813 | $ 1,973 | $ 6,558 | $ 7,620 |
Share-based Compensation (Stock Option Activity) (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2017
shares
| |
| Stock Option Shares | |
| Stock Option Shares Outstanding at beginning of period (shares) | 518,252 |
| Granted (shares) | 200,000 |
| Exercised (shares) | (1,500) |
| Forfeited or expired (shares) | (156,720) |
| Stock Option Shares Outstanding at end of period (shares) | 560,032 |
Share-based Compensation (Stock Option Activity Narrative) (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Millions |
9 Months Ended |
|---|---|
|
Sep. 30, 2017
USD ($)
$ / shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unrecognized share-based compensation expense related to unvested options | $ | $ 0.5 |
| Amortized over a weighted average period | 2 years 6 months 3 days |
| Weighted average exercise price of vested options (in dollars per share) | $ / shares | $ 12.98 |
Income Taxes (Summary of Tax Expense and Effective Tax Rates) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Income Tax Disclosure [Abstract] | ||||
| Income before income taxes | $ 2,584 | $ 157 | $ 48,118 | $ 31,854 |
| Income tax expense | $ 955 | $ 1,690 | $ 13,519 | $ 7,704 |
| Effective tax rate (percent) | 37.00% | 1076.40% | 28.10% | 24.20% |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Income Tax Disclosure [Abstract] | ||
| Unrecognized tax benefits | $ 5.1 | $ 4.8 |
Earnings Per Share (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Earnings Per Share [Abstract] | ||||
| Net income (loss) attributable to common stockholders - basic and diluted | $ (2,263) | $ (5,352) | $ 22,978 | $ 12,744 |
| Less: adjustment for income allocated to participating securities | 0 | 0 | (3,642) | (2,018) |
| Net income (loss) attributable to common stockholders | $ (2,263) | $ (5,352) | $ 19,336 | $ 10,726 |
| Weighted average common shares outstanding - basic (shares) | 71,895 | 73,493 | 73,212 | 73,323 |
| Plus: dilutive effect of stock options and unvested restricted stock units (shares) | 0 | 0 | 948 | 1,407 |
| Weighted average common shares outstanding - diluted (shares) | 71,895 | 73,493 | 74,160 | 74,730 |
| Basic (in dollars per share) | $ (0.03) | $ (0.07) | $ 0.26 | $ 0.15 |
| Diluted (in dollars per share) | $ (0.03) | $ (0.07) | $ 0.26 | $ 0.14 |
Earnings Per Share (Narrative) (Details) - shares |
3 Months Ended | 9 Months Ended |
|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2017 |
|
| Series A Preferred Stock [Member] | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
| Percentage of common stock if-converted Series A preferred stock (percent) | 16.10% | |
| Series A preferred shares, number of shares issuable if converted (shares) | 13,793,100 | |
| Stock Options and Restricted Stock Units [Member] | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
| Anti-dilutive securities not included in the calculation of diluted income per share | 1,700,000 | 700,000 |
Commitments And Contingencies (Minimum Future Lease Payments) (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
|
|---|---|
| Commitments and Contingencies Disclosure [Abstract] | |
| 2017 (remainder of year) | $ 14,992 |
| 2018 | 51,789 |
| 2019 | 36,534 |
| 2020 | 28,287 |
| 2021 | 22,514 |
| Thereafter | 68,658 |
| Total minimum lease payments | 222,774 |
| Minimum sublease rentals excluded from the commitments schedule | $ 200 |
Commitments And Contingencies (Operating Lease Rental Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
| Operating Leases, Rent Expense, Net [Abstract] | ||||
| Minimum rentals | $ 19,505 | $ 21,983 | $ 60,693 | $ 66,967 |
| Contingent rentals | 4,264 | 4,789 | 12,086 | 12,467 |
| Less: Sublease rentals | (55) | (21) | (144) | (139) |
| Total rent expense | 23,714 | 26,751 | 72,635 | 79,295 |
| Common area maintenance, parking and storage. | $ 2,500 | $ 2,500 | $ 7,700 | $ 7,700 |
Commitments And Contingencies (Purchase Commitments) (Details) - 9 months ended Sep. 30, 2017 € in Millions, $ in Millions |
EUR (€) |
USD ($) |
|---|---|---|
| Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
| Maximum guaranteed payments for third-party manufacturer purchases | € 3.5 | $ 4.1 |
| Purchase Commitment [Member] | ||
| Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
| Purchase commitments with third party manufacturers | 114.9 | |
| Information Technology Services Agreement [Member] | ||
| Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
| Purchase commitments with third party manufacturers | 5.0 | |
| Duration of renewed agreements | 3 years | |
| Second Service Provider's Service Agreement [Member] | ||
| Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
| Purchase commitments with third party manufacturers | $ 2.0 | |
| Duration of renewed agreements | 18 months |
Operating Segments and Geographic Information (Narrative) (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2017
segments
| |
| Segment Reporting [Abstract] | |
| Number of operating segments | 3 |
Legal Proceedings (Details) - USD ($) $ in Millions |
Feb. 25, 2015 |
Jan. 13, 2015 |
Sep. 30, 2017 |
|---|---|---|---|
| Income Tax Examination [Line Items] | |||
| Accrued estimated losses | $ 0.5 | ||
| Possible amount exceeding accrued liabilities | $ 0.1 | ||
| Brazilian Federal Tax Authorities [Member] | |||
| Income Tax Examination [Line Items] | |||
| Assessments sought again entity | $ 10.5 | $ 4.6 |
RNN;G%T"SQQR
MG$+254BR1# D7S*D6QF.Z0=XN@W?;PK<1_A^G3W[1_YLDR"+!-G_*OP8DF1_
MBV2KCBJP;9PE1RHSZ#C'*^\RKG?Q"=F?\&G6'[AMA7;D;#R^:^Q^8XP'E+*[
MP@'J\'LMAH3&A^,-GNTT9)/A33__'[9\XO(-4$L#!!0 ( .5@9TM-R*4/
MM $ -(# 9 >&PO=V]R:W-H965T
F>D@IJWDO_;(9'F.KY0,E4_%>X@,3PH 1SE$:ZN)*R=]ZHB06E*/XV
M[D+'?1AOME?8.B"= .D,V$< &Q-%Y9^XYT5FS4#LV/N.AR?>'%+L31F @Y" 7JR"C('01@&5DU Y*]="]Z
M^ I3/SM*IN:_PQDDPKT3K%%H:<,O*7KKM)I4T(KB'^,JVK .D_Z%%B ::R%6KW5F"<
MYNBFC4;-;M!$,TWTJ"B7B@1/$J0 )HK(21&9>/Q L78;8*&ULE5?M
M;ILP%'T5Q ,4;# ?51)I:3MMTB95G;;]=A,G007,P$FZMY\-#@+[PFA^!$S.
M/?<>V_<$KZZ\?FM.C GGO